HL Deb 30 April 1990 vol 518 cc772-3

2.45 p.m.

Lord Sudeley asked Her Majesty's Government:

Why the insolvency service has failed to notify personally those bankrupts who received an automatic discharge from their bankruptcy on 29th December 1989 under the terms of the Insolvency Act 1986.

Lord Trefgarne

My Lords, responsibility for issuing certificates of discharge rests with the relevant court, not the insolvency service. Nonetheless, considerable publicity surrounded the passage of this legislation and a press notice was issued earlier this year. In addition, appropriate information was made available on request to interested parties.

Lord Sudeley

My Lords, I thank my noble friend for that Answer. Can he say which newspapers printed the press release that he mentioned in his Answer and what guarantee there is that the parties concerned read it? Secondly, does my noble friend agree that the interest of individual bankrupts must vary and that some bankrupts could be much in need of the personal notification referred to in the Question? The information given to me by the DTI about personal notification of discharges from bankruptcy following the Insolvency Act 1986 is that many parties move away without leaving a new address or take no notice of their notification.

Lord Trefgarne

My Lords, as my noble friend's supplementary question suggests, the matter is not as straightforward as it may at first appear. There is the problem to which he referred. Some bankrupts have moved away and have not left a forwarding address. Furthermore, the provision to which the Question refers did not apply to all bankrupts, as my noble friend will be aware. For example, those who had been bankrupt previously within a certain period were not covered by the 1986 Act. Therefore, the difficulty involved in notifying all the individuals concerned has been considerable. A press notice was issued widely to all the main media organs of the United Kingdom: it is a matter of regret that not many took it up.

Lord Williams of Elvel

My Lords, in the light of the exchange between the Minister and his noble friend can the Minister say what steps the Government are taking to ensure that the insolvency service will cope satisfactorily with the increasing number of bankruptcies? There was a rise of 40 per cent. during last year. That figure will become worse as a result of the introduction of the uniform business rate. Will there be a press release? In particular, will there be a special service for the business residents of the constituency of Bath where a considerable problem has arisen for the sitting Member?

Lord Trefgarne

My Lords, I am not sure that the noble Lord's question arises directly from that on the Order Paper. However, I assure him that the insolvency service will be entirely capable of handling whatever demands are placed upon it.

Lord Tordoff

My Lords, is the Minister surprised that bankrupts should leave their premises without providing a forwarding address?

Lord Trefgarne

My Lords, it is a little unwise of them if they wish to take advantage of the provisions of the Act to which my noble friend referred.

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